MG Rover liquidators target further £56m for creditors
PwC pursues HMRC for £56m in overpaid VAT on vehicles made by MG Rover and supplied to fleets
LIQUIDATORS from PwC dealing with the collapse of MG Rover believe they can secure further £56m for creditors, ten years after the car maker was placed into administration.
PwC is pursuing HMRC for overpaid VAT dating back a number of years on vehicles manufactured by MG Rover and supplied to fleet operators. If successful, the claim will add to the £80m returned to creditors to date.
The matter is subject to litigation. Rival car maker BMW, which sold MG Rover in 2000, believes it is owed the money. A VAT tribunal ruled in favour of PwC but is subject to appeal.
The liquidators have realised £165m to date and agreed more than 5,600 claims for creditors.
Rob Hunt, partner at PwC and one of the original administrators, said: “Any further dividend to creditors depends upon recoveries from the remaining claims and we will continue to work hard for the many people affected by MG Rover’s collapse.”
MG Rover collapsed in 2005 with the loss of 6,000 jobs and led to a ten year dispute between Deloitte and accounting watchdog the FRC over the firm’s controversial role advising the owners of MG Rover.
Deloitte was slapped with a record £14m fine and accused, along with former partner Magshoud Einollahi, of deliberate misconduct and acting against the public interest. An appeal tribunal subsequently overturned most of the charges against Deloitte and cleared Einollahi of professional misconduct.
